Morocco: Selected Issues
IMF Staff Country Reports, March 12, 2018
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- Morocco: Selected Issues
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Bibliographic details
- Published: March 12, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484346419.002
Summary
- This Selected Issues paper examines the distributional effects of tax reforms in Morocco.
- Overall, the performance of Morocco’s tax system is satisfactory, but there is scope to strengthen it and make it more equitable and less distortive.
- Morocco would benefit from a comprehensive and well explained tax reform strategy aiming to reduce inequality and boost growth.
- The recommended reform approach would protect the most vulnerable and help broaden the tax base, remove tax distortions, and better share the tax burden.
Key findings and analysis
- Distributional effects of tax reforms are central to evaluating equity and efficiency in Morocco’s tax system.
- Current tax performance: characterized as satisfactory, yet with identifiable weaknesses in equity and distortion.
- Strengthening targeting of social programs is necessary to protect the most vulnerable while pursuing tax-base broadening.
Recommended tax reform package (policy recommendations)
- Combine several key components, for example:
- Reducing tax exemptions.
- Raising property tax.
- Lowering corporate tax rates.
- Strengthen the targeting of social programs to shield vulnerable groups during reform.
- Implement a comprehensive and well explained tax reform strategy to reduce inequality and boost growth.
Subjects and keywords
- Subject: Corporate income tax, Labor, Production, Productivity, Revenue administration, Taxes, Value-added tax
- Keywords: Asia and Pacific, Corporate income tax, CR, East Africa, Europe, ISCR, labor productivity level, Middle East, Morocco, North Africa, Productivity, productivity gap, productivity growth, rate, reform package, tax, tax rate, tax reform, Value-added tax
Content in this bundle
- Country Report